Thoughts on Covington, KY?
Investor · San Francisco Bay Area · Member since 2020 · 8 posts · 2 votes
Hello!
Currently looking into Covington, KY area for single family homes for my next investment. I have been doing a lot of research into the greater Kenton County area in general. I wanted to know if anyone has had any experience looking at potential investments in the area and have any general thoughts. I'm currently not located in this area so my knowledge is limited to what I can do online and from calling up local brokers.
Thanks!
Hey Sean,
To Jay's point, there are definitely good and bad areas of Covington. I'm finding that in the desirable areas right now, a high majority (95%+) are homes that are either fixed up and selling at a premium, or priced to be owner occupied, and leave little to no margin for an investor.
There are several areas in Covington that are not as "hot" that deals can be made. However, that is for a reason. Personally, I own about 40 total apartment units across 5 properties in the Covington area, and this is what I've seen as of late.
Studio, 1bd: These are on the market and snatched up immediately be renter demand. When I have a vacancy, I get calls left and right about these. Example: I listed a studio on Facebook marketplace for $550, and had 100 messages within 24 hours.
2bd: I only own 2 of these, and these took a little longer to fill.
3bd to 4bd: I own 1 of these that I just purchased, so I don't have a great feel yet, but I can tell you my perception. Finding a person that is qualified for a $550 studio means its just one person. That's easy. Finding a couple or group that can afford a 3bd or 4bd, your tenant pool will obviously be reduced. That being said, again to Jay's point, there are a handful of properties, even on the MLS right now, that could be bought, fixed up about $10k or $15k, and still be a 1% or maybe even a 1.5% property. But without the fix up, you won't get a qualified tenant that wants it, and be left with many applicants that have 1.5x or 2x the income instead of the ideal 3x.
Just my thoughts, good luck and if you have any questions, shoot me a message!
I've lived in this area all my life realistate is hot here.. good area to invest in with good cash flowing properties. There's lot of avenues to take i found that what's best for me is founding something little distressed that needs little work makes best profit all around but every one is different. I would be willing to help you any way I can if you decide to invest here. I can be your boots on the ground. Lol
Appreciate the offer! That is great to hear. Where have you been noticing a lot of the buyers/renters in the area are coming form? Cincinnati/Ohio area?
Yes lot of people live in northern ky and work in Ohio. Northern ky is building up lot.. good rent rates for the prices..really good roi on your money..
lot cheaper in ky do to tax rates compared to Ohio tax rates
Yes lot of people live in northern ky and work in Ohio. Northern ky is building up lot.. good rent rates for the prices..really good roi on your money..
Just be care cause there's good and bad parts of covington
Hey Sean,
To Jay's point, there are definitely good and bad areas of Covington. I'm finding that in the desirable areas right now, a high majority (95%+) are homes that are either fixed up and selling at a premium, or priced to be owner occupied, and leave little to no margin for an investor.
There are several areas in Covington that are not as "hot" that deals can be made. However, that is for a reason. Personally, I own about 40 total apartment units across 5 properties in the Covington area, and this is what I've seen as of late.
Studio, 1bd: These are on the market and snatched up immediately be renter demand. When I have a vacancy, I get calls left and right about these. Example: I listed a studio on Facebook marketplace for $550, and had 100 messages within 24 hours.
2bd: I only own 2 of these, and these took a little longer to fill.
3bd to 4bd: I own 1 of these that I just purchased, so I don't have a great feel yet, but I can tell you my perception. Finding a person that is qualified for a $550 studio means its just one person. That's easy. Finding a couple or group that can afford a 3bd or 4bd, your tenant pool will obviously be reduced. That being said, again to Jay's point, there are a handful of properties, even on the MLS right now, that could be bought, fixed up about $10k or $15k, and still be a 1% or maybe even a 1.5% property. But without the fix up, you won't get a qualified tenant that wants it, and be left with many applicants that have 1.5x or 2x the income instead of the ideal 3x.
Just my thoughts, good luck and if you have any questions, shoot me a message!
Lot of insight there. Yes deals are hard to come by with out putting in some rehab to bring value up. I've been really interested in brrr method that going to use on a purchase that just bought in latonia..I'm wanting to invest in more desirable areas that are outside covington that are more desirable tenants and better rent rates..
I fully understand how hard it is to find deals on MLS .. I'm currently searching everyday for good investment opportunities but can only do one at time do to financial situation. If you would like I can present any deals that I find in these better areas to you for better analysis. If your interested
Hello, I am from San Diego but visited the Covington area at the end of January to check out a couple of potential opportunities. I think Covington is quite nice - although I am an outsider and certainly not as familiar as a local. I checked out areas off of MLK (south/east of Main St). Home are around 100 yrs old but it still seems to be strong in rents. Headed back in a couple of weeks but would love to connect with anyone in the area to potentially partner on an investment if the right opp could be found.
@Jay Mersfelder
Thanks for the insightful information! Yeah, most of what I've been able to find, if not on Zillow, Redfin, local MLS, etc., is what some brokers in the area have been able to share with me.
To provide some more detail, I’m looking at ideally small multi unit properties (2-4 units). From what I’ve been told and have been able to find, most of those types of assets appear to be popular along the River in places like Covington and Dayton.
Are there potentially other areas I should also monitor for small multi family’s?
Erlanger,Florence lots of good areas other then covington.just tough to find multi-family outside covington or Newport have to be on them fast..But as I said there's good areas in covington also just be careful. If its on river probably good but will be expensive..what area are you thinking about? I can help you far as if its good spot or not..what price range are you looking for?rents are great right on river there's good value in in latonia far as price vs ROI. I have 2 properties in latonia that have great ROi. BUT but want to find nice duplex out side of covington.. but will be next year before I can do that.. so I'm open to helping you if you like.. just let me know
Northern ky is hot market its all about area with type of tenants you attract.. if you go with the cheaper area you'll have more problems with renters but great cash flow..better area decent c.f. but better appreciation
Hello, I am from San Diego but visited the Covington area at the end of January to check out a couple of potential opportunities. I think Covington is quite nice - although I am an outsider and certainly not as familiar as a local. I checked out areas off of MLK (south/east of Main St). Home are around 100 yrs old but it still seems to be strong in rents. Headed back in a couple of weeks but would love to connect with anyone in the area to potentially partner on an investment if the right opp could be found.
@Jay Mersfelder will definitely be in touch
Look forward to hearing from you..Theres lot of value i can bring to partnering with me..I can save tremendously with all repairs and upgrades. I've been into restoration on older commercial masonry buildings in Cincinnati for years.Sense picking up couple properties over last year i have 1handy man on my team also..And can save on property management by keeping it in house.let me know some of your goals here and I can get looking.q
@Jay Mersfelder
Thanks for the insightful information! Yeah, most of what I've been able to find, if not on Zillow, Redfin, local MLS, etc., is what some brokers in the area have been able to share with me.
To provide some more detail, I’m looking at ideally small multi unit properties (2-4 units). From what I’ve been told and have been able to find, most of those types of assets appear to be popular along the River in places like Covington and Dayton.
Are there potentially other areas I should also monitor for small multi family’s?
Yes there are other areas Latonia is really good and also Erlanger..Theres lot of good areas just finding them building fast is key in them areas..I can bring lot of valuable tools to the table if you would like to partner..Have yrs of construction experience and currently work in Cincinnati on lot of the big buildings theredoing restoration on structural repair..I also have one handyman that works for me by the hour..so any upgrades or repairs I can do..Also can save us on property management. Just let me know if what your investment goals are and we can take it from there.
Hey Sean,
To Jay's point, there are definitely good and bad areas of Covington. I'm finding that in the desirable areas right now, a high majority (95%+) are homes that are either fixed up and selling at a premium, or priced to be owner occupied, and leave little to no margin for an investor.
There are several areas in Covington that are not as "hot" that deals can be made. However, that is for a reason. Personally, I own about 40 total apartment units across 5 properties in the Covington area, and this is what I've seen as of late.
Studio, 1bd: These are on the market and snatched up immediately be renter demand. When I have a vacancy, I get calls left and right about these. Example: I listed a studio on Facebook marketplace for $550, and had 100 messages within 24 hours.
2bd: I only own 2 of these, and these took a little longer to fill.
3bd to 4bd: I own 1 of these that I just purchased, so I don't have a great feel yet, but I can tell you my perception. Finding a person that is qualified for a $550 studio means its just one person. That's easy. Finding a couple or group that can afford a 3bd or 4bd, your tenant pool will obviously be reduced. That being said, again to Jay's point, there are a handful of properties, even on the MLS right now, that could be bought, fixed up about $10k or $15k, and still be a 1% or maybe even a 1.5% property. But without the fix up, you won't get a qualified tenant that wants it, and be left with many applicants that have 1.5x or 2x the income instead of the ideal 3x.
Just my thoughts, good luck and if you have any questions, shoot me a message!
Hey Evan congrats on your investments sounds like your off to good start. ARE area does bring good cash flowing properties if done right..I'm curious what neighborhoods have you been investing in.?
I agree with pretty much everything @Jay Mersfelder and @Evan Haag have said on this post. I grew up about 10 minutes from Covington in the suburbs and currently live in Covington for the last couple years. I planned on buying my first investment property in Covington, but as Evan said many properties are already fixed up and have little cash flowing/value add opportunities, or are very distressed and are bigger projects than I am comfortable getting into currently.
Many parts of Northern Kentucky are great investment areas though. I closed on my first single family at the end of December in Elsemere, KY just 10-15 minutes form Covington. I don't see the appreciation in this area being as hot as some places closer to the river and Cincinnati, but being right by a university in a quiet subdivision the cashflow looks great. Plus these homes are all 50ish years old instead of 100+.
If you ever need any information on the area I would be glad to give you some insight.
Hey Jay, so I'm a little spread. I have a 12 unit on 6th street, a mixed use on Pike, a 15 unit on 12th, and then a 6 unit on the 1200 block of Scott St. So clearly deal with very difference clientele based on the property. I just purchased a Single Family between Covington and Ludlow off Highway Ave with intentions to BRRR.
I personally love that Northern KY is getting some love in these posts. Although I'm biased, I also love NKY. I own a duplex in Erlanger and after we fixed it up a couple of years ago, I've had no problem renting either unit out. I just wish I had bought more of them. Erlanger is really close to Elsmere and both are within a good range of Cincinnati's airport, which is seeing a ton of growth right now. I agree with @Zach Reichert that these areas are a bit overlooked. That may not last for long as I just watched an Elsmere duplex go for nearly $9k over asking.
And while I agree that small multi-family gets a bit more difficult to find the further out towards the 275 beltway, when you do find those deals, you better hop on them quick. Everything good (especially in areas further from the riverfront) goes REALLY quickly right now.
While finding deals on the MLS can be difficult, what I've found to be most helpful is just to pay close attention to new properties every single day. This awareness has allowed me to see things as soon as they come on the market and gives my clients a leg up on the competition. This may seem like common sense, but if you're only searching for properties on Zillow or checking the MLS every few days, you're missing out on some properties that are pending quickly.
The areas that I'd keep an eye on would be Covington, Newport, Dayton, Bellevue, Erlanger and Elsmere. The other thing that I don't think should be missed here is that the City of Covington just bought the old IRS building site (at least 23 acres) back in August and they're working on a plan to develop that area into parks, retails, apartments, etc. This will be huge for Covington and will add to a lot of the development that we've seen in this part of Covington over the past few years. I'm very excited about this area in the near future.
@Evan Haag @Jay Mersfelder this is great insight guys. I bought my primary residence in Covington last year and now I am considering adding to my investment portfolio here as well. Do you have a good realtor you use for properties coming onto the market?
Hey Sean, I’m a big fan of Covington! Been investing there for the last several years and I’d agree with nearly everything that others have shared. I’m in the midst of a major redevelopment project on Madison Ave and the city has given me tons of money for the project...you read that right, given me!
So the city is clearly investing in creating nicer units for folks as well as spending a ton on infrastructure improvements. Small MF is tough to come by, but definitely look into something that needs work as it’ll be much easier to find
Best of luck
@Evan Haag @Jay Mersfelder this is great insight guys. I bought my primary residence in Covington last year and now I am considering adding to my investment portfolio here as well. Do you have a good realtor you use for properties coming onto the market?
Myself lol. I got fed up with a majority of realtors that I tried because they did not have an investor mind, and were completely motivated by the sale versus helping me. So I got my license and practice on the side.
Another that I would suggest is Joe Bramlage from Sparen Realty. He is a great realtor, and has several units himself, so has an investment mind, and does just shovel you garbage listings because he's trying to make a target number.
@Jay Mersfelder
Area not the best but with how the area is going down there I'm sure the value will continue to grow.. I just purchased another SFH here in Latonia..I would love to invest in 2,3 or 4plex. I'm 48 just getting stared and have been studying for sometime now..still have lot to learn but bring local know the area well and the value of a deal or not.. I'm sure your other units will get rented soon.. Think SFH are the thing right now with everything that's going on..I enjoyed hearing about your journey its very inspiring